Manufacturing PMI jumps to 59.2 in October amid GST boost, soft input costs
- IBEF
- November 4, 2025
India’s manufacturing sector maintained strong momentum in October, with the Manufacturing Purchasing Managers’ Index (PMI) climbing to 59.2 from 57.7 in September, according to S&P Global. The growth was driven by solid domestic demand, Goods and Services Tax (GST) relief measures, productivity gains, and higher technology adoption. Chief India Economist at HSBC, Ms. Pranjul Bhandari, said the acceleration reflected expansions in output, new orders, and job creation, supported by robust end-demand. Input prices eased in October, even as selling prices rose slightly as manufacturers passed on cost increases to consumers. The PMI reading, well above the 50-mark, signals sustained expansion across manufacturing activities.
A surge led the upturn in new domestic orders, while export growth moderated to its weakest level this year. Strong buying activity lifted inventories, with input purchases growing at their fastest pace since May 2023, highlighting firms’ confidence in future demand. Input cost inflation softened to an eight-month low, though output prices rose at a twelve-year high, matching September’s level. Employment growth remained steady for the twentieth straight month. Manufacturers expressed optimism about the coming months, citing GST reforms, capacity expansion, and sustained demand as key growth drivers.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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